March 03, 2008
Lunch for Monday, March 3

Rinaldi Leaves Bloomsbury
Richard Charkin announced today, "It is with enormous regret that I have to let you know that Karen Rinaldi, President of Bloomsbury USA, has accepted a very senior and interesting post at Rodale Books. Karen has
been the heart and soul of one of the most innovative and successful publishing companies in the USA. She has been instrumental in building a great list of books, a great team of people and a great reputation for
Bloomsbury. We shall all miss her enormously but she has left a superb legacy on which we can build and for that we are all grateful."
 
Rinaldi says: "The past nine years have been rewarding in so many ways -- not the least of which being the amazing relationships forged with colleagues and authors. I am grateful for the incredible opportunity Bloomsbury has given me to build, with an extraordinary team spanning both sides of the Atlantic, Bloomsbury US from a three-person outpost to the successful five-division American company that it is today. I am now ready to leave Bloomsbury in the capable hands of my colleagues and look forward to new challenges and learning experiences at my new position at Rodale."

Strong Finish at Penguin US
Penguin came back from a weak first half of the year with sales of 479 million pounds for the last two quarters, leaving full-year sales almost even at 846 million pounds. Down two million pounds from a year ago, the company says "underlying" sales (if they didn't report in pounds and/or if the dollar had not plunged) were up 3 percent. CEO John Makinson notes "that understates the achievement in the US," driven by Oprah-backed Ken Follett and books like Elizabeth Gilbert's Eat, Pray, Love, which shipped "nearly 1.5 million copies in December alone." Penguin USA ceo David Shanks concurred that "just about everything worked for us last year." Companywide, adjusted operating profit rose by all measures, up 12 percent to 74 million pounds (and said to be up 20 percent on that "underlying" basis). The company still aims to increase margins to 10 percent for 2008.
 
Around the world, UK sales were "pretty flat" according to Makinson and the DK unit was "a little bit down" balanced by "the best Canadian publishing in our history." He notes they have "more ground to make up in London than elsewhere in the company" while citing "progress in cost improvement" from initiatives put in place over the past few years. Emphasizing the company's efforts at "global publishing," Makinson celebrated success in multiple territories for Kim Edwards' Memory Keeper's Daughter and Alan Greenspan's The Age of Turbulence, with "almost 1 million copies shipped worldwide," and now in 2008 with Oprah's new pick Eckhart Tolle.
 
On the electronic front, the company is sticking with what Makinson called "a reasonably conservative approach." He says that they are "quite deliberately at the conservative end of the spectrum on copyright protection and pricing issues," noting that "leadership in one of these issues doesn't give you much" and that "if we have to change our position, it wouldn't be too difficult to do that." In one shift, Penguin USA has decided (again) to experiment with DRM free downloadable audio files through e-music. While there are no firm plans to offer such files elsewhere, Shanks says "it's very possible" that they will join Borders' planned MP3 store this spring as well as other initiatives. Makinson says they are aiming to have "a consistent policy everywhere in the world" and says Penguin "may well be publishing DRM-free downloads in the UK," too.
 
But Shanks is not tempted to join other publishers in experimenting with free book files online, saying "I think it's a mistake to value a download at zero." Similarly, Penguin will continue to price ebooks the same as print books. "Whoever buys an electronic book is not going to buy the paper version," Shanks says, and it would be "harmful to my authors and harmful to my margins" to price ebooks lower. He sees current ebook sales as driven by "the books people want to read" rather than price. "We have an opportunity to change the economics of publishing, and it's not supposed to be changed for the worse." With the release of the Kindle, "our overall e-book sales [for both Kindle and Sony Reader] are up dramatically over the first two months," Shanks says, though Makinson adds, "that's from a very small to a slightly less smaller number."
 
Separately, Pearson's Education units, which provide two-thirds of sales, were up 4 percent, with sales of 2.684 billion pounds, while operating profit rose 5 percent to 404 million pounds. Pearson ceo Marjorie Scardino said in a conference call, "We will have integration costs from the Harcourt testing business which will be meaningful, so you should infer from that that we will be adding to our margins but for those costs."
Pearson results
 
Also from Penguin, the ten finalists for in the Amazon Breakthrough Novel Award contest have been culled, and now the public gets to vote online. The "panel of publishing industry professionals" will post their comments on the manuscripts "on or about March 17."
Amazon site

More DRM-Free Audio On the Way
On the audiobook DRM front, other publishers are looking at joining Penguin and following Random House's lead in offering more digital audiobooks for sale as unencrypted MP3 files. Simon & Schuster says they will unlock about 150 audio titles in the "next couple of months" while Harper indicates they are "watching these developments closely but... not yet ready to end DRM."
 
Borders says they plan "to begin selling MP3 downloads by early spring," while BN still has "no plans to enter the audio book market at this time."
NYT

Too Much Security and Technology Impairs "Free" Harper Download
Also on the subjects of electronic files and free-dom in its various forms, Cory Doctorow posted on Boing Boing on Saturday about Harper's limited-time free online posting of Neil Gaiman's AMERICAN GODS. "I think that Harper Collins got this one wrong. They've put the text of American Gods up in a wrapper that loads pictures of the pages from the printed book, one page at a time, with no facility for offline reading. The whole thing runs incredibly slowly and is unbelievably painful to use. I think we can be pretty sure that no one will read this version instead of buying the printed book -- but that's only because practically no one is going to read this version, period."
 
Noting that unauthorized copies can be downloaded with ease, he adds, "The 'security' that Harper Collins has bought with its clunky, kudgey experiment is nonexistent: pirates will just go get the pirate edition.
 
Gaiman, who has nurtured his fan base with care for years, posts on his own site and agrees: "I'm currently talking to Harpers about ways we can make the American Gods online reading experience a more pleasant one. And about ways to give American Gods away that would make Harper Collins happy while also making, say, Cory Doctorow happy too."
 
At the same time, Gaiman notes "I was surprised by a few emails coming in from people accusing me of doing bad things for other authors by giving anything away -- the idea being, I think, that by handing out a bestselling book for nothing I'm devaluing what a book is and so forth, which I think is silly." As he says, "the problem isn't that books are given away or that people read books they haven't paid for. The problem is that the majority of people don't read for pleasure."
 
Meanwhile, the site offers a free audio story ready to go.
BB
Gaiman site

The Most News that the Business Uses
Every day, we gather, report, recap and interpret the most publishing news, deal transactions, and job offers anywhere. Today's Lunch Deluxe includes these additional stories and links:
 
Jan Morris Prepares Book for Posthumous Publication
WSJ May Take Piece of Reporters' Book Deals
Riggio: Business Is "Fairly Sound"
Menaker's Show Debuts
Marley and Movie
Long Lives for Short Books
 
while PublishersMarketplace.com adds about 155 deals that went out last night in our full round-up, capsule coverage of over 100 reviews from all the top newspapers yesterday, and dozens of news stories and write-ups from last week.
 
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imprints) live contacts, our representation database, comprehensive coverage of reviews and bestseller lists from all over, special tools ranging from the Book Tracker to Amazoom, our custom publishing search index, and the new top reviewers tables.
 
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Re-Stored in NY
Hasting's Good Yarns Bookshop is being bought by manager Bill Tester, according to Shelf Awareness. He stepped in three days before the scheduled closing, after most of the inventory and some of the fixtures were already sold off. Shelf says "Tester is negotiating with the landlord, who has expressed support, and aims to remodel the store, rename it and convert it into a combination bookstore and learning center."

BN's Online Studio
Also on the video front, BarnesandNoble.com announced via a press release the launch of a multimedia section on their site that "will feature a range of original content about books, readers and writers, and showcase web video series and other multimedia content about varied aspects of literature, complemented by user-generated material."
 
It's run by Mike Skagerlind, vp and head of digital media, who recently joined the site after 12 years at Nickelodeon, most recently as general manager of Nickelodeon Online.
 
One five-minute weekly series, Barnes & Noble Tagged!, hosted by Molly Pesce, "will let book-loving viewers know what new titles to look out for and will reveal the stories behind recent book news." The first episode tips new releases from Jodi Picoult, Linda Fairstein, Jeffrey Archer, Anne and Christopher Rice, and more. Book Obsessed features regular readers talking about books they love.
BN Studio
Release

The Latest Jobs
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Library Sales Representative  [Full Time]
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